Seeking Alpha
View as an RSS Feed

The ETF Authority  

View The ETF Authority's Comments BY TICKER:
Latest  |  Highest rated
  • Thoughts on the Silver Crash [View article]
    Was silver's upside move too steep prior to this sell off? Absolutely; nothing grows to the sky. But to argue that this is just normal market activity with respect to margin increases, etc. you are being naive. Banks aren't making any money from their core business which is lending, so now they are relying on their prop desks for profits while continuing to hide billions in losses on the balance sheet characterized as "held-to-maturity" assets. Their goals are aligned with the Fed who needs to engineer a risk-off trade to drive down interest rates.

    This country is approaching $15T in debt and gaining speed. When the next headline read something like "U.S. Government to Completely Eliminate the Military, Social Security, Medicare, and Medicaid;" I'll listen.

    Portfolio insurance just got cheaper.
    May 5, 2011. 04:16 PM | 12 Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    Waldipup,

    Interesting perspective; particularly as those margin hikes came when interest rates were already very high and the market was awash with inflationary expectations. There is no such risk premium baked into the fixed income landscape today. As the old saying goes, "the bond market is smarter than the stock market."

    Could these margin hikes ultimately serve to strengthen the PM market by discouraging the small speculator and ensuring well funded, strong hands hold the metals?
    May 3, 2011. 10:04 AM | 1 Like Like |Link to Comment
  • Comparing 3 Key Emerging Market ETFs [View article]
    lo maximo,

    I will have to keep an eye on this offering. My concern is with the 1/14/10 inception and assets < $500M. I minimally like to see performance during the broad flight from risk that occured in 2008.

    Performance since inception very similar to EEM, VWO thus far.
    May 2, 2011. 01:02 PM | Likes Like |Link to Comment
  • Comparing 3 Key Emerging Market ETFs [View article]
    Alan,

    On PBR; you are 100% correct.

    On historical performance; we can argue that index composition and past performance will have no bearing on future composition/results for every asset class/index. The words "past performance not indicative of future results" are displayed on every piece of compliance approved sales literature in the industry. My goal was simply to demonstrate that EM stocks historically exhibit greater volatility when measured objectively against other asset classes. If I were to show a chart of the past five years, this still holds true.

    You are also 100% correct about the availability of country and sector specific ETF's though that is a discussion beyond the intended scope of this article. WisdomTree's ETF provides an automated, disciplined strategy for index construction on behalf of investors who are not interested in sector rotation or find transactions costs/tax implications prohibitive.
    May 2, 2011. 12:51 PM | Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    Fundamentals remain intact; the PM "bubble burst" in the 80's because Paul Volcker was serious about squashing inflation. There is no such rhetoric coming from the Fed today. The timing of margin hikes and sell-offs in the futures markets is suspect; occuring when volume is light (i.e. outside of New York trading hours).
    May 2, 2011. 11:33 AM | 1 Like Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    Appears to be profit taking by retail investors. The fund is now trading at a 2.4% discount which is as deep as I can recall over the past few years. This is not the type of action that occurs at a top. Silver, which is now about 57.4% of the fund, may be due for a break but the fundamentals remain intact.

    For some great insight on the day-to-day I suggest a few resources; King World News Weekly Metals Wrap, Ed Steer's Gold & Silver Daily, and Trader Dan Norcini.
    May 1, 2011. 12:28 PM | 2 Likes Like |Link to Comment
  • Lower Bank Revenue Pressures Financial ETFs [View article]
    Perhaps the market is finally catching on to the accounting shenanigans involving the recharacterization of trading assets in order to avoid marking impaired securities to market.
    Apr 26, 2011. 02:56 PM | Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    Nice selloff today. Important to note that the paper silver market is/was radically out of touch with the physical market. The sharp upward move over the past several months signifies the unwinding of the manipulative short positions in the paper market as physical market participants begin to understand that there simply is no silver available for delivery even at these prices. Corrections may be sharp but the fundamentals remain firmly in place.
    Apr 26, 2011. 02:43 PM | 2 Likes Like |Link to Comment
  • Small Caps Still Beating Out Large Caps [View article]
    This argument is really hinged on U.S. growth rather than small vs. large. Should growth in the U.S. stall, certainly small caps will not perform well. Accordingly it is important to evaluate small cap plays abroad, beyond the scope of the Russell 2000. Less mature markets present opportunities for small cap investments.

    A secondary consideration is level of cash earning zero interest on the balance sheets of large corporations. For better or worse, this may lead to acquisitions, which gives small caps an immediate boost because there is often a premium paid over market value.
    Apr 25, 2011. 11:42 AM | Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    I can't quite figure out the Sprott offerings; both PSLV and PHYS. Intuitively it seems the convertibility would make these funds track the spot price closely. However, upon going to stockcharts.com and plotting the PHYS against the gold continuous contract reveals rather significant under performance of the fund.
    Apr 24, 2011. 11:36 PM | 3 Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    Thank you for the kind words and I could not agree more.
    Apr 24, 2011. 11:31 PM | 2 Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    I agree that PM's will exhibit extreme volatility, however the Fed appears poised to engage in almost perpetual QE given the size of its balance sheet. Politically the path of least resistance is to inflate the debt away, and even if that attitude changes it is likely to late for belt tightening as a viable solution. Not to mention that any belt tightening would be disastrous for real estate and stocks, the values of which seem to be the Fed's third mandate these days.
    Apr 24, 2011. 11:29 PM | 4 Likes Like |Link to Comment
  • Central Fund of Canada Share Offering Presents Buying Opportunity [View article]
    It is a fund that passively holds the metals on behalf of its shareholders. As such, it is not taxed as a collectible at the 28% rate, which is a pitfall for long-term holders of GLD or SLV. Ernst & Young also audits the physical bullion not to mention the track record back to '61.
    Apr 24, 2011. 11:26 PM | 4 Likes Like |Link to Comment
  • Are Investors Overpaying for the Japan Smaller Capitalization Fund? [View article]
    Published earlier this morning.
    Apr 24, 2011. 11:22 PM | Likes Like |Link to Comment
  • Farewell Precious Metal Stocks, Again [View article]
    Michael,

    The leveraged ETF's present a couple of problems. First, they are meant to provide 2x or 3x daily exposure and as such reset each day which leads to significant tracking error over time. Secondly, these leveraged instruments utilized swaps with entities like Citi and Goldman to gain exposure to their target asset class, which introduces counterparty risk.

    KP
    Apr 21, 2011. 04:18 PM | 5 Likes Like |Link to Comment
COMMENTS STATS
65 Comments
63 Likes